How an ITIN works

-Identification number is issued by the IRS to allow people to file a tax return.

-Identification number is issued by the IRS to allow people to file a tax return.

May 06, 2008

A few Tribune readers have asked me how undocumented immigrants are able to pay taxes without a valid Social Security number. Some assume that they can only do so if they have borrowed or stolen one. But what a lot of people don't know is that the IRS, or Internal Revenue Service, issues a nine-digit identification number that allows people -- regardless of their immigration status in the country -- to file a tax return. It's called the Individual Taxpayer Identification Number, or ITIN. The ITIN, one might argue, adds complexity to the immigration debate. Those who want undocumented immigrants deported say the government is legitimizing their stay by allowing them to pay taxes. Others who stand behind them argue the government is being hypocritical, signaling to them in effect, "You're not welcome here but we'll gladly take your money before we deport you." The IRS says the purpose of the U.S. Department of Treasury regulations that in 1996 introduced the ITIN was "to address the concern by the IRS and the U.S. Department of the Treasury that, without a unique number, taxpayers could not be identified effectively and tax returns could not be processed efficiently," wrote Jodie Reynolds, a spokeswoman for the IRS. Before 1996, the IRS used temporary tax identification numbers, but problems in tracking and matching information persisted. The ITIN, strictly a tax processing number, is issued to people who are not eligible for a Social Security number. On its Web site, the IRS says ITINs are issued regardless of immigration status because "both resident and nonresident aliens may have U.S. tax return and payment responsibilities under the Internal Revenue Code." Because those who file taxes through an ITIN don't have a SSN, they will not receive Social Security benefits. It's simple to apply for an ITIN. You fill out a form. But now why, you might ask, would anyone want to pay taxes without getting anything in return? Michael E. Durham, an immigration lawyer, says he advises his clients who are undocumented to pay taxes not only for complying with IRS requirements but because immigration agents, in evaluating petitions for legal status, have been known to interpret an applicant's tax payment history as proof of "good moral character." Also, Durham said, proposals for immigration reform to come out of Washington in recent years have included requirements that applicants show a history of tax law compliance. "Most likely as you go down the immigration path you'll have to show that you've paid taxes," he said. Pablo Ros Voces Latinas Pablo Ros writes a weekly feature for The Tribune.